The Fair Work Amendment (Baby Priya’s) Bill 2025 passed in Federal Parliament on 3 November 2025, and received Royal Assent as an Act (Baby Priya’s Act) on 6 November 2025.
Baby Priya’s Act amends the Fair Work Act 2009 (FWA) and ensures that, unless agreed otherwise, employer-funded paid parental leave protections are enshrined in legislation for parents who experience the stillbirth or death of a child.
Further, Baby Priya’s Act prevents employers from unilaterally cancelling periods of paid parental leave in cases of still birth or the death of a child. However, it does not prevent employers and employees from agreeing to cancel such periods of leave.
Crucially, Baby Priya’s Act only deals with the operation of entitlements to paid parental leave under the terms and conditions of an employee’s employment in cases of stillbirth or death of a child. It does not alter existing provisions dealing with employees’ entitlements to unpaid parental leave in the case of the stillbirth or death of a child.
The protections arising from Baby Priya’s Act apply where a child is stillborn or dies on or after 7 November 2025.
Breach Provisions
Employers should be aware that a breach of the protections in the FWA arising from the amendments in Baby Priya’s Act will result in breach of the civil remedies provisions, and carries the following penalties:
Individual
| Contravention | Penalty Units | Value |
| Ordinary | 60 | $19,800 |
| Serious | 600 | $198,000 |
Small Business
| Contravention | Penalty Units | Value |
| Ordinary | 300 | $99,000 |
| Serious | 3000 | $990,000 |
Body Corporate
| Contravention | Penalty Units | Value |
| Ordinary | 1,500 | $495,000 |
| Serious | 15,000 | $4,950,000 |
Exemptions
The protection offered does not apply if one of the following exceptions apply.
- The right to cancel employer funded paid parental leave
The protection does not apply if an employer can refuse or cancel employer funded paid parental leave because of the stillbirth or death of a child under the terms and conditions of employment, such as an employment contract or enterprise agreement.
However, the exception does not apply if the terms and conditions are varied by an employer after 7 November 2025.
- No entitlement under terms and conditions of employment
The protection doesn’t apply if an employee isn’t entitled to employer funded paid parental leave because of stillbirth or the death of a child under the terms and conditions of their employment.
However, this exception doesn’t apply if their terms and conditions are varied by the employer after 7 November 2025 to allow this.
- Other leave entitlements apply
The protection doesn’t apply if an employee is entitled to other forms of leave related to stillbirth or the death of a child under their terms and conditions of employment.
Final Thoughts
The Baby Priya’s Act 2025 delivers important protections by preventing employers from unilaterally cancelling paid parental leave following a stillbirth or the death of a child. It reinforces the need for employers to review and update their leave policies and employment terms to remain compliant.
IRiQ Law can help your organisation navigate these changes. If you’re unsure whether your workplace is aligned with the new requirements, get in touch with our team today.
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